Principal amount

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Principal amount

The face amount of debt; the amount borrowed or lent. Often called principal.

Principal Amount

The amount of money one borrows. Unless the loan is interest-free, one always pays more than the principal amount to the lender. The interest is calculated over the principal amount still outstanding. As a result, many loans are amortized so that a greater amount of principal amount remains outstanding for a longer period of time so the lender can make the most profit from the loan. It is also simply called the principal.
References in classic literature ?
These, it seemed, were calculations of compound interest on what he called 'the principal amount of forty-one, ten, eleven and a half', for various periods.
This focus on the principal amount of a security ignores concepts such as the time value of money, and leaves open planning opportunities to receive securities with the same principal amounts but different values based on interest rates and/or maturity dates.
354 generally provides that, in most tax-free reorganizations, no gain or loss is recognized to a shareholder on an exchange of stock for stock, or on an exchange of securities for stock or securities of the same or lesser principal amount.
354 or 355 has no principal amount and thus is not boot in a Sec.